IDB taps the Middle East Sukuk market with a US$10.07 billion Sukuk listing on NASDAQ Dubai - IFN

IDB taps the Middle East Sukuk market with a US$10.07 billion Sukuk listing on NASDAQ Dubai

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UAE: Following a series of discussions in October, the IDB has reportedly revealed its plans to list a Sukuk program worth AED37 billion (US$10.07 billion) on NASDAQ Dubai. The announcement was made during the World Islamic Economic Forum and is said to be in concurrence with the emirate’s initiative of becoming the global capital of Islamic economy. According to sources, the Sukuk are likely to be based on a medium-term notes format, with the issuance representing the IDB’s first in the Middle East. Commenting on the deal Dr Ahmad Mohamed Ali Al Madani, the president of the IDB, noted that NASDAQ Dubai’s international regulatory advantages, coupled with its commitment to Islamic finance solutions, rendered the exchange “a natural home” for the Islamic bank’s securities. “Supported by Sukuk listings on NASDAQ Dubai, as the international financial exchange based in the region, the IDB is well placed to finance its activities in sectors ranging from energy to transportation and agriculture to health and education across the Islamic world,” said Dr Ahmad. Following the inauguration of Dubai’s Islamic economy initiative, the emirate’s Higher Committee for the Development of the Islamic Economy Sector plans to implement 46 initiatives within a period of three years to transform Dubai into the world's economic Islamic capital. Adding to Majid Al Futtaim’s previous listing of its US$400 million Sukuk program in July, the IDB’s issuance will bring the nominal value of Islamic securities listed on the exchange to US$21.15 billion.